Ownership: Registration
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of (a) imposing fines on companies that do not register beneficial owners under the Economic Crime and Corporate Transparency Act 2023 and (b) hypothecating those revenues for local authorities.
Answered by Blair McDougall
The Economic Crime Acts 2022 and 2023 established and enhanced the Register of Overseas Entities. Financial penalties are used where entities fail to comply. Alongside restrictions on property transactions, this helps protect the integrity of the UK property market by enhancing transparency about who owns and controls overseas entities.
As with other fines, revenues are paid into the Consolidated Fund. Government does not generally support the hypothecation of fine revenue, as this can reduce flexibility in public finances and risk weakening the deterrent purpose of penalties. Core funding for local authorities is set through the Local Government Finance Settlement.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →